Internship Report-India Infoline

7/29/2019 Internship Report-India Infoline

1/61

1 | P a g e

DECLARATION

I, Brajesh Vir, hereby declare that the project report on Summer Training is

a result of my own work and my indebt ness to other work or publication, if

any, have been duly acknowledged.

PLACE: Navi Mumbai

DATE: Brajesh Vir


2/61

2 | P a g e

PREFACE

There is always a gap between theory & practice i.e. knowledge & its

application. Someone has said that KNOWLEDGE IS POWER but

looking into the present scenario, it does not stands good because simplyacquiring the knowledge does not fulfil the need to become an efficient

manager.

We are required to apply the knowledge acquired. Thus, the above saying

can rightly be modified as APPLICATION OF KNOWLEDGE IS

POWER. To bridge this gap, training is required. Training is the process

of learning. It is the application of that knowledge.

Training is required to clear the theoretical concepts & ideas that we have

read in the classroom. This is the opportunity to clear those bookish

concepts & thereby assimilate managerial knowledge.

I once again want to thanks all those who helped me in this endeavour.


3/61

3 | P a g e

ACKNOWLEDGEMENT

First of all I would like to thank the Almighty God for His blessing

enabling me to stand in any facets of my life & my parents for their

continuous support.

I am also grateful to our professor Mrs. Bhavika Thakkar who guided us

throughout the training program & was on our side to help us when we

encountered any difficulty.

I am also thankful to the following persons for their valuable guidance, co-

operation & support in making this training successful: Mr. Bijay Dash and

all staff member.

I also express my sincere thanks to all those who has directly/indirectly

helped me in this training & in the preparation of my project report.


4/61

4 | P a g e

EXUCUTIVE SUMMARY

The title of the project done at India Infoline Ltd. is Investment Analysis and

Portfolio Management for Client Base of India Infoline.

The main objective of the project was to analyse the customers investment

habit and provide them with required suggestions according to their risk

appetite which is known by the risk profiling questionnaire with the help of the

portal of India Infoline.

This include the different types of investment options like Equity, Commodity,

Currency, Future & Options and Insurance. We used to suggest them the

investment pattern which suits to their risk appetite and which will help themto achieve their short term and long term goals.

While this time period we found that people are less aware of these investment

patterns and they failed to maintain the systematic investment which leads

them to a big loss. People think that investment in Equity and Commodity

should be done only when the market condition is good. They fail to diversify

their portfolio which is also one of the reason of losses.

We tried to provide financial education to different strata of public with thehelp of presentations, stalls etc. We found the fact that people are interested in

getting the financial knowledge but afraid of the frauds happened in the

industry.


5/61

5 | P a g e

INDEX

Sr. No. Contents Page No.

1 Introduction 6

2 Research Methodology 7

3 Industry Overview 11

4 Transaction Cycle 20

5 India Infoline Profile 27

6 The Management 31

7 Terminal 35

8 Services By India Infoline 40

9 What is Insurance 48

10 SWOT Analysis 51

11 Major Player of The Industry 53

12 Findings 56

13 Limitation 58

14 Recommendations 59

15 Conclusion 60

16 Bibliography 61


6/61

6 | P a g e

Introduction:-

Objective:-

Financial planning for new and existing client base of india infoline by

analysing various investment option like Equity, Commodity and Insurance

with respect to current market scenario to make balanced and effective

portfolio.

Overview

Investment analysis

1.The study of how an investment is likely to perform and howsuitable it is for a given investor. Investment analysis is key toany sound portfolio-management strategy. Investors notcomfortable doing their own investment analysis can seekprofessional advice from a financial advisor.

2.An analysis of past investment decisions. An investmentanalysis is a look back at previous investment decisions and thethought process of making the investment decision. Key factorsshould include entry price, expected time horizon, and reasonsfor making the decision at the time.

3.For example, in conducting an investment analysis of a mutualfund, the investor would look at factors such as how the fundhas performed compared to its benchmark. The investor could

also compare performed to similar funds, its expense ratio,management stability, sector weighting, style, and assetallocation. Investment goals should always be considered whenanalysing an investment; one size does not always fit all, andhighest returns regardless of risk are not always the goal.

4.For any beginner investor, investment analysis is essential.Looking back at past decisions and analysing the mistakes andsuccesses will help fine-tune strategies. Many investors don'teven document why they made an investment let alone analyse


7/61

7 | P a g e

why they were wrong or right. You could make a properdecision, extraordinary events could lose you money, and ifyou didn't analyse it, you would shy away from making thesame decision.

Portfolio management

The art and science of making decisions about investment mixand policy, matching investments to objectives, asset allocation forindividuals and institutions, and balancing risk against performance.Portfolio management is all about strengths, weaknesses,opportunities and threats in the choice of debt vs. equity, domesticvs. international, growth vs. safety, and many other trade-offs

encountered in the attempt to maximize return at a given appetite forrisk.

In the case of mutual and exchange-traded funds (ETFs), thereare two forms of portfolio management: passive and active. Passivemanagement simply tracks a market index, commonly referred to asindexing or index investing. Active management involves a singlemanager, co-managers, or a team of managers who attempt to beat

the market return by actively managing a fund's portfolio throughinvestment decisions based on research and decisions on individualholdings. Closed-end funds are generally actively managed.

RESEARCH METHODOLOGY:-

Research Methodology refers to search of knowledge. One can also

define research methodology as a scientific and systematic search for requiredinformation on a specific topic.

The word research methodology comes from the word advance

learners dictionary meaning of research as a careful investigation or inquiry

especially through research for new facts in my branch of knowledge for

example some author have define research methodology as systematic effort to

gain new knowledge.

Methodology of my project start with-


8/61

8 | P a g e

In the first phase we were rained and taught on different things aboutmarket.

After that we started facing the real life problems by facing customers. We went to different companies and firms for corporate tie-ups.

They provide leads and we made calls to them. We used to provide the details of different products provided by IIFL to

convince them for investment.

We presented power point presentations to different government officesto make them aware of various investment products available in the

market.

We used to maintain the database of the leads. Got knowledge of technical and fundamental analysis.

For new client base:-

Target customer:-

Gov. Employees School staff Friends and Relatives

Activities:

Presentation in Gov. Offices and schools in order to aware employeesand staff for various investment option on the basis of their risk appetite.

These Presentations were followed by Questionnaire filling in order to

know their interest regarding investment option.

Put stall in various corporate office and society premises in order to giveknowledge about various investment product of IIFL. Basically

corporate visit were for corporate tie-ups in order to cover large and

efficient client base.

Tele-calling to new client base and generating report in order to makebalanced and effective portfolio on the basis of their risk appetite

For existing client base:-

Target Customer:-

HNIs Retail Investors


9/61

9 | P a g e

Activities:-

Tele-calling to existing client base of India Infoline in order to solve their

queries and give strength to their portfolio by make them aware about various

investment option provided by IIFL.

These investment option includes Equity trading, Gold trading, Gold SIP and

Insurance (For Guaranteed return).


10/61

10 | P a g e

Coverage:-

We had existing client base of All over Mumbai

For new clients, we targeted Navi Mumbai, more specifically Vashi (Schools

and corporate offices), Belapur (Gov. Offices), Nerul and Kharghar.

Time Period:-

3 month- For Activities and Research

1 month- For data analysis

1 month- For data interpretation

Limitations:-

1) We visited round 100 corporate offices but unable to get considerableoutput because either they already have Tie-ups with other financial firm

or they are not interested in this financial year.

2) We gave presentation in about 10 schools, our main objective behindthis activity was to target staff member but we didnt get response up to

the mark because of inefficient client base.

Deliverables:-

Data base that we collect from various sources we mentioned above are

definitely very useful for IIFL.

We generate approx. 500-600 new customer base that are interested in

investment in various financial product in near future, this will definitely help

IIFL in order to expand their client base.

Questionnaire filled by the customer for investment option according to their

interest will give more specific idea to IIFL for pitching them.

Corporate and Govt. office contacts will help IIFL to get large client base at a

time because customer comes under this category generally need tax planning

and Retirement planning.

We generate some leads by tele-calling as well, proper follow-up of that

customer will also give business to IIFL.


11/61

11 | P a g e

INDUSTRY OVERVIEW:-

Introduction:-

Stock exchanges to some extent play an important role as indicators,reflecting the performance of the countrys economic state of health. Stock

market is a place where securities are bought and sold. It is exposed to a high

degree of volatility; prices fluctuate within minutes and are determined by the

demand and supply of stocks at a given time. Stock brokers are the ones who

buy and sell securities on behalf of individuals and institutions for some

commission.

The Securities and Exchange Board of India (SEBI) is the authorized

body, which regulates the operations of stock exchanges, banks and other

financial institutions. The past performances in the capital markets especially

the securities scam by Harshad Mehta has led to tightening of the

operations by SEBI. In addition the international trading and investment

exposure has made it imperative to better operational efficiency. With the view

to improve, discipline and bring greater transparency in this sector, constant

efforts are being made and to a certain extent improvements have been made.


12/61

12 | P a g e

History of the stock broking industry

Indian Stock Markets are one of the oldest in Asia. Its history dates back to

nearly 200 years ago. The earliest records of security dealings in India are

meager and obscure.

By 1830's business on corporate stocks and shares in Bank and Cotton

presses took place in Bombay. Though the trading list was broader in 1839,

there were only half a dozen brokers recognized by banks and merchants

during 1840 and 1850. The 1850's witnessed a rapid development of

commercial enterprise and brokerage business attracted many men into the

field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from

United States of Europe was stopped; thus, the 'Share Mania' in India begun.

The number of brokers increased to about 200 to 250. However, at the end of

the American Civil War, in 1865, a disastrous slump began (for example, Bank

of Bombay Share which had touched Rs 2850 could only be sold at Rs.87). At

the end of the American Civil War, the brokers who thrived out of Civil War

in 1874, found a place in a street (now appropriately called as Dalal Street)

where they would conveniently assemble and transact business.

In 1887, they formally established in Bombay, the "Native Share and Stock

Brokers' Association" (which is alternatively known as "The Stock Exchange").

In 1895, the Stock Exchange acquired a premise in the same street and it was

inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Thus in the same way, gradually with the passage of time number of

exchanges were increased and at currently it reached to the figure of 24 stock

exchanges.


13/61

13 | P a g e

Development

An important early event in the development of the stock market in India

was the formation of the Native Share and Stock Brokers Association at

Bombay in 1875, the precursor of the present-day Bombay Stock Exchange.

This was followed by the formation of associations /exchanges in Ahmedabad

(1894), Calcutta (1908), and Madras (1937). IN addition, a large number of

ephemeral exchanges emerged mainly in buoyant periods to recede into

oblivion during depressing times subsequently.

In order to check such aberrations and promote a more orderly development of

the stock market, the central government introduced a legislation called the

Securities Contracts (Regulation) Act, 1956. Under this legislation, it is

mandatory on the part of stock exchanges to seek government recognition. As

of January 2002 there were 23 stock exchanges recognized by the central

Government. They are located at Ahmedabad, Bangalore, Baroda,

Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin,

Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana,

Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The

Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai

(OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of

India), Patna, Pune, and Rajkot. Of course, the principle bourses are the

National Stock Exchange and The Bombay Stock Exchange, accounting for

the bulk of the business done on the Indian stock market.

While the recognized stock exchanges have been accorded a privileged

position, they are subject to governmental supervision and control. The rules of

a recognized stock exchanges relating to the managerial powers of the

governing body, admission, suspension, expulsion, and re-admission of its

members, appointment of authorized representatives and clerks, so on and so

forth have to be approved by the government. These rules can be amended,

varied or rescinded only with the prior approval of the government. TheSecurities Contracts (Regulation) Act vests the government with the power to

make enquiries into the affairs of a recognized stock exchange and its business,

withdraw the recognition the task of regulating the stock exchange to the

Securities Exchanges Board of India.


14/61

14 | P a g e

BSE (THE STOCK EXCHANGE OF MUMBAI)

The Stock Exchange, Mumbai, popularly known as "BSE" was

established in 1875 as "The Native Share and Stock Brokers Association".

It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which

was established in 1878. It is a voluntary non-profit making Association of

Persons (AOP) and is currently engaged in the process of converting itself into

demutualised and corporate entity. It has evolved over the years into its present

status as the premier Stock Exchange in the country. It is the first Stock

Exchange in the Country to have obtained permanent recognition in 1956

from the Govt. of India under the Securities Contracts (Regulation) Act,

1956.

The Exchange, while providing an efficient and transparent market for

trading in securities, debt and derivatives upholds the interests of the

investors and ensures redressal of their grievances whether against the

companies or its own member-brokers. It also strives to educate and enlighten

the investors by conducting investor education program and making available

to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides

the policies and regulates the affairs of the Exchange. The Governing Board

consists of 9 elected directors, who are from the broking community (one third

of them retire ever year by rotation), three SEBI nominees, six public

representatives and an Executive Director & Chief Executive Officer and a

Chief Operating Officer.


15/61

15 | P a g e

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock

exchange in April 1993. It started operations in June 1994, with trading on the

Wholesale Debt Market Segment. Subsequently it launched the Capital Market

Segment in November 1994 as a trading platform for equities and the Futures

and Options Segment in June 2000 for various derivative instruments.

NSE has been able to take the stock market to the doorsteps of theinvestors. The technology has been harnessed to deliver the services to the

investors across the country at the cheapest possible cost. It provides a nation-

wide, screen-based, automated trading system, with a high degree of

transparency and equal access to investors irrespective of geographical

location. The high level of information dissemination through on-line system

has helped in integrating retail investors on a nation-wide basis. The standards

set by the exchange in terms of market practices, Products , technology and

service standards have become industry benchmarks and are beingreplicated by other market participants. Within a very short span of time, NSE

has been able to achieve all the objectives for which it was set up. It has been

playing a leading role as a change agent in transforming the Indian Capital

Markets to its present form. The Indian Capital Markets are a far cry from what

they used to be a decade ago in terms of market practices, infrastructure,

technology, risk management, clearing and settlement and investor service.


16/61

16 | P a g e

Historical Index Chart

The chart shows the data related to NIFTY Ups and Downs from May 2003 to

May 2013.


17/61

17 | P a g e

NCDEX (National Commodities and Derivatives Exchange)

NCDEX started working on 15th

December, 2003. This exchange provides

facilities to their trading and clearing member at different 130 centres for

contract. In commodity market the main participants are speculators, hedgers

and arbitrageurs.

Promoters of NCDEX are:

National Stock Exchange(NSE) ICICI bank Life Insurance Corporation(LIC) National Bank for Agricultural and Rural Development (NABARD) IFFICO Punjab National Bank (PNB) CRISIL

Why NCDEX?

NCDEX is nationalized screen based system which is providingtransparent, private and easy services.

NCDEX is one of the traditional media which gives online information NCDEX is one of the Indian commodity exchange, constructed on the

basis of the current national institutes the exchange has been established

with the coloration of leading institutes like NABARD, LIC, NSI etc.

In India NCDEX has maximum settlement guarantee fund. NCDEX has appointed two exports for checking quality at the time of

delivery


18/61

18 | P a g e

Facilities provided by NCDEX

NCDEX has developed facility for checking of commodity and alsoprovides a ware house facility

By collaborating with industrial partners, industrial companies, newsagencies, banks and developers of kiosk network NCDEX is able to

provide current rates and contracts rate.

To prepare guidelines related to special products of securitizationNCDEX works with bank.

To avail farmers from risk of fluctuation in prices NCDEX providesspecial services for agricultural.

NCDEX is working with tax officer to make clear different types of salesand service taxes.

NCDEX is providing attractive products like weather derivatives


19/61

19 | P a g e

MCX (Multi Commodity Exchange)

MULTI COMMODITY EXCHANGE of India limited is a new order

exchange with a mandate for setting up a nationwide, online multi-commodity

marketplace, offering unlimited growth opportunities to commodities marketparticipants. As a true neutral market, MCX has taken several initiatives for

users

In a new generation commodities futures market in the process, become the

countryspremier exchange.

MCX, an independent and a de-mutualized exchange since inception, is all

set up to introduce a state of the art, online digital exchange for commodities

futures trading in the country and has accordingly initiated several steps to

translate this vision into reality.


20/61

20 | P a g e

TRANSACTION CYCLE

A person holding assets (Securities/Funds), either to meet his liquidity

needs or to reshuffle his holdings in response to changes in his perceptionabout risk and return of the assets, decides to buy or sell the securities. He

selects a broker and instructs him to place buy/sell order on an exchange. The

order is converted to a trade as soon as it finds a matching sell/buy order. At

the end of the trade cycle, the trades are netted to determine the obligations of

the trading members securities/funds as per settlement cycle. Buyer/seller

delivers funds/ securities and receives securities/funds and acquires ownership

of the securities.

A securities transaction cycle is presented above. Just because of thisTransaction cycle, the whole business of Securities and Stock Broking has

Decision toTrade & Place

Order

TradeExecution

Clearing ofTrade

Settlement ofTrade

Funds/Securities

Transaction

Cycle


21/61

21 | P a g e

emerged. And as an extension of stock broking, the business of Online Stock

broking/ Online Trading/ E-Broking has emerged.

Traditional Broking

Traditionally In stock Market, the investors invest their money in shares

under the guidance of the Brokers of any stock broking company. This is

convenient to those investors who are not familiar with the computer and the

use of internet. But it requires more dealers to the share broking companies to

give guidance related to investment. There was a chance of inaccuracy of price

because it is a time consuming process. The cost of the company also increases

due to more paperwork. The investor point of view, there was a problem of

privacy. The information of investor may leak by the broker. So, to remove

these limitations of traditional broking, there was an emergence of new concept

e-Broking.

E- Broking - A small beginning:

You have some money to dabble with. Trading shares on BSE/NSE has

always been your dream. When will you ever find the time? And besides, the

hassle of finding a broker is not easy. Realizing there is untapped market of

investors who want to be able to execute their own trades when it suits them,

brokers have taken their trading rooms to the Internet. Known as online

brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full

service onlinebroker. Discount online brokers allow you to trade via Internet

at reduced rates. Some provide quality research; other doesnt. Full service

online brokerage is linked to existing brokerages. These brokers allow their

clients to place online orders with the option of talking/ chatting to brokers if

advice is needed. Brokerage rates here are higher. 5Paisa.com,

ICICIDirect.com, IndiaBulls.com, Sharekhan.com, Geojit securities.com,

HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of the online broking

sites in India. With Net trading in securities and rapid consolidation between

multiple stock exchanges, the international securities marketplace is fast

becoming a "global village" through the creation of a universal virtual equity

market. Compared to the Western countries, online trading is still in its infancy

in India. With trading turnover at around Rs. 10 crores per day from online

trading compared to a combined gross turnover of around Rs. 9000-10,000


22/61

22 | P a g e

crores handled by the BSE and NSE together, online trading has a long way to

go.

Internet Trading In India:

In the past, investors had no option but to contact their broker to get real

time access to market data. The Net brings data to the investor on line and net

broking enables him to trade on a click. Now information has become easily

accessible to both retail as well as big investors.

The development of broking in India can be categorized in 3 phases:

1. Stock brokers offering on their sites features such as live portfolio manager,

live quotes, market research and news to attract more investors.

2. Brokers offering on line broking and relationship management by providing

and offering analysis and information to investors during broking and non-

broking hours based on their profile and needs, that is, customized services.

3. Brokers (now e-brokers) will offer value management or services such as

initial public offerings on line, asset allocation, portfolio management,

financial planning, tax planning, insurance services and enable the investors

to take better and well- considered decisions.

In the US, 82 per cent of the deals are done on line. The European on

line broking market is expected to be of $8 billion and is likely to raise fivefold

by 2002. In India, presently Internet trading can take place through the order

routing system, which will route client orders to exchanges trading systems for

execution of trades on stock exchanges (NSE and BSE). This will also

Require interface with banks to facilitate instant cash debit or credit and

the depository system for debit or credit of securities.

Objectives of Internet trading:

Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote

continuity and market depth.

Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to

support nationwide expansion of market activity.

Besides, through Internet trading three fundamental objectives of securities


23/61

23 | P a g e

regulation can be easily achieved, these are: Investor protection, creation of

a fair and efficient market and, reduction of the systematic risks.

Procedure for Internet trading:

Step-1: Those investors interested in doing the trading over internetsystem, that is, NEAT-ISX, should approach the brokers and register with

the Stock Broker.

Step-2: After registration, the broker will provide to them a login name,password and a personal identification number (PIN).

Step-3: Actual placement of an order. An order can then be placed byusing the place order window as under:

i. First by entering the symbol and series of stock and other parameterssuch as quantity and price of the scrip on the place order window.

ii. Second, fill in the symbol, series and the default quantity. Step-4: It is the process of review. Thus, the investor has to review the

order placed by clicking the review option. He may also re-set to clear the

values.

Step-5: After the review has been satisfactory; the order has to be sent byclicking on the send option.

Step-6:The investor will receive an ``OrderConfirmation message alongwith the order number and the value of the order.

Step-7:In case the order is rejected by the Broker or the Stock Exchangefor certain reasons such as invalid price limit, an appropriate message will

appear at the bottom of the screen. At present, a time lag of about ten

seconds is there in executing the trade.

Step-8:It is regarding charging payment, for which there are differentmodes.

Some brokers will take some advance payment from the investors and will

fix their trading limits. When the trade is executed, the broker will ask the

investor for transfer of funds by the investor to his account.


24/61

24 | P a g e

The above figure shows how the internet trading procedure.


25/61

25 | P a g e

Factors to keep in mind while selecting online brokers:

Brokerage cost:It is important to weigh up the subscription and trading costs

charged by an online broker against benefits offered by the site. All online

brokers display their charges on their sites. Some make sure you find the

charges easily, while with others you will have to search a bit.

Safety: Please make sure site has 128-bit encryption to ensure safety of

transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit

encryption. You normally get a secured Login id and password. It is always

advisable to frequently change trading password. Ideally online trading site

should be fully integrated. The greater the backward integration, the better it is

for the customer. Ideally broking account, Demat account and bank account

should be linked electronically.

Rate refresh:Rate refresh has to be real-time with no time lag. The speed and

reliability comes with huge investment in technology. It is always advisable to

check rates of online broking sites with BSE/ NSE terminal rates.

Speed of execution:System has to be fast and reliable that does just one job-

executes your trades. The last thing you need is a site that is heavily congested

with the users who are downloading heavy jpeg graphs or pulling the latest

story why market is moving. The site should be one click wonder where

squaring off all your positions or cancelling all your pending orders takes one

click and a confirmation of action.

Trading limit:For trading, all sites provide 4 times buy and sell limit against

margin money put in by customer. For delivery of shares, buying limit is equal

to margin money put in by customer. Couple of sites also provides margin

funding for buying of shares.

Free trial period:Site should allow users free trial period to familiarize

yourself with system before you decide to become trading member of the site

Intraday chart/ historical chart: The site should provide intraday chart tick by

tick time and price data / historical chart for technical analysis by investors of

particular scrip. Lots of people trade based on charting packages.


26/61

26 | P a g e

Success Factors for e-broking:

There are three key success factors for e-broking,

(i)

Scalability and robustness of the trading system:The fundamental difference between the Internet as a transaction medium

and the conventional closed user group network is that the Net is a universal

platform providing concurrent access to infinite users at any given point in

time. Consequently, it becomes imperative for any Net-based application to

have a proven capability for scalability and robustness which ensures the

ability to handle and process requests from multiple users at any given point

in time.

(ii)

Bandwidth optimization:In the Indian context where availability of a sufficient bandwidth is limited,

the application software should demonstrate intelligence in optimizing the

available bandwidth by deploying advanced technologies such as

streaming.

(iii) Integration with third party systems:On the Net, with information feeds available from multiple points, it is

prudent to deploy applications that are built on open architecture

methodology for interfacing with third party systems in the new Net age.

Challenges in Internet Trading:

For Internet trading to succeed it is imperative to have both, a robust

business model as well as a comprehensive technology strategy. Some of

the challenges are discussed: Transaction fulfilment--In the Net-based

economy, it is both prudent and essential for a broker/intermediary to offer

total solution to the clients at a single point. Total solutions would

essentially mean offering interfaces with banks, depositories, information

feeds, etc. for efficiency in trade completion and reducing duplication of

client information. The service providers will have to go beyond the

stage of mere order execution and emerge as "informediaries" rather

than "intermediaries". This will not only ensure lower trading costs in

terms of offering cross services but will also help in maximizing ROIs.


27/61

27 | P a g e

INDIA INFOLINE PROFILE:-

REGISTEREDOFFICE SEBI REGN NO

BSE (Cash & F & o) INB011097533

India Infoline Ltd. NSE (Cash & F&O) INB231097537

75, Nirllon Complex, F & O INF231097537

Off western Express Highway, PMS INP000000944

Goregaon (E), Mumbai-400063

Tel: (022) 66489000 COMMODITIES

Fax: (022) 26850451 MCX Regn No 10470

Emil: [email protected] NCDEX Regn No 00378
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


28/61

28 | P a g e

About India Infoline Ltd.

We are a one-stop financial services shop, most respected for quality of its

advice, personalized service and cutting-edge technology.

Vision

Our vision is to be the most respected company in the financial services

space.

Introduction

India Infoline Ltd is listed on both the leading stock exchanges in India,

viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange

(NSE). The India Infoline group, comprising the holding company, India

Infoline Ltd and its subsidiaries, straddles the entire financial services space

with offerings ranging from Equity research, Equities and derivatives trading,

Commodities trading, Portfolio Management Services, Mutual Funds, Life

Insurance, Fixed deposits, GoI bonds and other small savings instruments to

loan products and Investment banking. India Infoline also owns and manages

the websites, www.indiainfoline.com and www.5paisa.com.

India Infoline Ltd, being a listed entity, is regulated by SEBI (Securities and

Exchange Board of India). It undertakes equities research which is

acknowledged by none other than Forbes as 'Best of the Web' and 'a must

read for investors in Asia'. India Infolines research is available not just over

the internet but also on international wire services like Bloomberg (Code:

IILL), Thomson First Call and Internet Securities where it is amongst the most

read Indian brokers. Its various subsidiaries are in different lines of business

and hence are governed by different regulators. The subsidiaries of India

Infoline Ltd are:


29/61

29 | P a g e

India Infoline Securities Pvt. LtdIndia Infoline Securities Pvt. Ltd is a 100% subsidiary of India Infoline Ltd,

which is engaged in the businesses of Equities broking and Portfolio

Management Services. It holds memberships of both the leading stock

exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National

Stock Exchange (NSE). It offers broking services in the Cash and Derivatives

segments of the NSE as well as the Cash segment of the BSE.

A SEBI authorized Portfolio Manager; it offers Portfolio Management

Services to clients. These services are offered to clients as different schemes,

which are based on differing investment strategies made to reflect the varied

risk-return preferences of clients.

India Infoline Commodities Pvt LtdIndia Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline

Ltd, which is engaged in the business of commodities broking. Our experience

in securities broking empowered us with the requisite skills and technologies to

allow us offer commodities broking as a contra-cyclical alternative to equities

broking. We enjoy memberships with the MCX and NCDEX, two leading

Indian commodities exchanges, and recently acquired membership of DGCX.

We have a multi-channel delivery model, making it among the select few to

online as well as offline trading facilities.

India Infoline Distribution Co Ltd (IILD)India Infoline.com Distribution Co Ltd is a 100% subsidiary of India

Infoline Ltd and is engaged in the business of distribution of Mutual Funds,

IPOs, Fixed Deposits and other small savings products. It is one of the largest

'vendor-independent' distribution houses and has a wide pan-India footprint of

over 232 branches coupled with a huge number of 'feet-on-street', which helps

source and service customers across the length and breadth of India. Its unique

value proposition of free doorstep expert advice coupled with free pick-up and

delivery of cheque has been met with an enthusiastic response from customers

and fund houses alike. Our business has expanded to include the online

distribution of mutual funds, wherein users can view and compare different

product offerings and download application forms which they can later submit


30/61

30 | P a g e

to the product provider.

Mortgages & LoansIILD has also entered the business to distribution of mortgages and loan

products during the year 2005-2006. The business is still in the investing phase

and we plan to roll the business out across its pan-Indian network to provide it

with a truly national scale in operations.

India Infoline Insurance Services LtdIndia Infoline Insurance Services Ltd is also a 100% subsidiary of

India Infoline Ltd and is a registered Corporate Agent with the Insurance

Regulatory and Development Authority (IRDA). It is the largest Corporate

Agent for ICICI Prudential Life Insurance Co Ltd, which is India's largest

private Life Insurance Company.

India Infoline Investment Services LtdIndia Infoline Investment Service Ltd is also a 100% subsidiary of India

Infoline Ltd. It has an NBFC licence from the Reserve Bank of India (RBI) and

offers margin-funding facility to the broking customers.

India Infoline Insurance Brokers LtdIndia Infoline Insurance Brokers Ltd is a 100% subsidiary of India Infoline

Ltd and is a newly formed subsidiary which will carry out the business of

Insurance broking. We have applied to IRDA for the insurance broking licence

and the clearance for the same is awaited.


31/61

31 | P a g e

THE MANAGEMENT:-

Mr. Nirmal Jain

Nirmal Jain is the founder and Chairman of India Infoline Ltd. He holds an

MBAdegree from IIM Ahmedabad, and is a Chartered Accountant (All IndiaRank 2) and a Cost Accountant. He has had an impeccable professional and

academic track record. He started his career in 1989 with Hindustan Lever

Limited. During his stint with Hindustan Lever, he handled a variety of

responsibilities, including exports andtrading in agro- commodities with Rs3bn

annual turnover. He then joined hands with two local brokers to set up their

equity research division, Inquire, in 1994. His work set new standards for

equity research in India. In 1995, he founded his own independent financial

research company, now known as India Infoline Ltd.

Mr. R Venkataraman

R Venkataraman is the co-promoter and Executive Director of India

Infoline Ltd. He holds a B. Tech degree in Electronics and Electrical

Communications Engineering from IIT Kharagpur and an MBA degree from

IIM Bangalore. He has held senior managerial positions in various divisions of

ICICI Limited, including ICICI Securities Limited, their investment banking

joint venture with J P Morgan of USA and with BZW and Taib Capital

Corporation Limited. He has also held the position of Assistant Vice President

with G E Capital Services India Limited in their private equity division. He has

varied experience of more than 14 years in the financial services sector.

The Board of Directors

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of

India Infoline comprises:

Mr Sat Pal Khattar (Non-Executive Director)

Mr Sat Pal Khattar joined the Board with effect from April 20, 2001. Mr

Sat Pal Khattar is a lawyer by profession He was the founding partner of a firm

of solicitors in Singapore named KhattarWong and at present is a Consultant in

the said firm. He is also a director of a number of public companies in

Singapore and India. He is the Chairman of 'Network India', a body


32/61

32 | P a g e

sponsored by the Government of Singapore, which promotes two-way

business contacts between Singapore and Indian business interests.

Mr Sanjiv Ahuja (Independent Director)

Mr Sanjiv Ahuja joined the Board with effect from August 28, 2002. Mr

Ahuja graduated from National University of Singapore with a degree in

Computer Science and is also a Certified Public Accountant. He started his

career in 1988 with Accenture (formerly Andersen Consulting) and has worked

on several large projects particularly in the electronics and utilities industries.

He joined the Thakral Group of Companies in 1991 as the Chief Executive of

their electronics packaging and Warehousing company in Singapore and has

also headed the group's Indian Investments division. He started his own

investment advisory and consulting company in 2001, named Centennial

Management Consultants Private Limited, focusing on investment mediation

and investment management and advice. At present, he is also an Executive

Director with Corporate Brokers International Private Limited, a reputed

Singapore based mergers and acquisitions firm focusing on the SME space and

also a board member of the Singapore Indian Chamber of Commerce and

Industry, a post he has held since 2002. He is very familiar with the South

Asian and South East Asian Markets and has direct investment experience in a

variety of industries including real estate development, distribution and

information technology. Mr Ahuja has an experience of more than 17 years.

Mr Nilesh Vikamsey (Independent Director)

Mr Nilesh Shivji Vikamsey joined the Board with effect from February 11,

2005. Mr Vikamsey qualified as a Chartered Accountant in 1985 and has been

a member of the Institute of Chartered Accountants of India since 1985. He has

a Diploma in Information System Audit ("DISA") from the Institute

ofChartered Accountants of India in 2003. In 1985, Mr Vikamsey was inducted

as partner in M/s Khimji Kunverji & Co., Chartered Accountants and was in

charge of the audit department till 1990 and thereafter also handles assignments

related to financial services, consultancy, investigations, mergers and

acquisitions, valuations etc. Mr Vikamsey is a director of Alpha Garments

Private Limited, English Apparels Private Limited, HLB Technologies

(Mumbai) Private Limited, Miloni Consultants Private Limited & Chairman of

HLB India. Mr Vikamsey is a member of the Accounting Standards Board and

erstwhile Member of the Vision & Restructuring Commitee of Institute of


33/61

33 | P a g e

Chartered Accountants of India and member of Expert Committees of Law and

Company Affairs, Infotainment & Media and Economic & Business Reforms

formed by the Indian Merchants' Chamber.

Mr Kranti Sinha (Independent Director)

Mr Kranti Sinha joined the Board with effect from January 27, 2005. Mr

Sinha graduated from the Agra University with a Masters degree. He started

his career in 1965 as a direct recruit Class I officer with Life Insurance

Corporation of India and has worked in various capacities and at different

locations throughout the country. He worked at various managerial levels and

rose through the hierarchy to serve as the Director and Chief Executive of

LIC Housing Finance Limited from August 1998 to December 2002 and

concurrently as the Managing Director of LICHFL Care Homes (a wholly

owned subsidiary of LIC Housing Finance Limited). He retired from the

permanent cadre of the Executive Director of LIC. He has also served as the

Deputy President of the Governing Council of Insurance Institute of India and

as a member of the Governing Council of National Insurance Academy, Pune

apart from various other such bodies. He is currently the Managing Director of

the Global Institute for Financial and Education Services (India) Private

Limited (a wholly owned subsidiary of The Global Institute, LLC, USA). Mr

Sinha is also on the Board of Directors of Hindustan Motors.


34/61

34 | P a g e

Changing trend

Remember the time when you left orders with your broker in the morning

and received a confirmation fax late in the evening?

You wondered whether you had acquired the shares at the best possibleprice for the day. Today, the picture is different. Imagine a scenario where you

log on to your account, get the live quotes of scripts you are interested in, get

advice from experts and research reports on your investment choice and then

just click the mouse to place your order, pay the amount due (which

automatically gets debited into your account with the on line brokerage firm),

get your account statement, and the delivery of your shares into your Demat

account. All this through just one click of a mouse. Seems like a dream? But

with online trading this has become a reality. A few seconds later, you get theconfirmation on your screen. And after the trade settlement, your bank and DP

accounts will reflect the changes accordingly.

The speed of transaction, confidentiality about the prices and ease of

settlement in the paperless mode should be good reasons for retail investors to

jump on to the Net. All they need is a PC, a modem, a subscription to an ISP,

an account with a bank (which has a web presence) and a depository account.

And they can choose from a plethora of e- trading web sites.

So, finally the changing trend is known as E-trading which really means

Buying and selling securities via the Internet or other electronic means such as

wireless access, touch- tone telephones, and other new technologies with online

trading. In most cases customers access a brokerage firm's Web Site through

their regular Internet Service Provider. Once there, customers may consult

information provided on the Web Site and log into their accounts to place

orders and monitor account activity"


35/61

35 | P a g e

Investor Terminal

Target customer segment

Investor Terminal (IT) is targeted at

Investors who invest quite often, churn their portfolios regularly andkeep a close watch on the market. They need to watch live quotes and

live charts.

Active stock market traders with medium volumes Students and researchers who need live streaming quotes and intraday

charts

Corporate treasury peopleHow to open an account

You can download the form in pdf format by clicking here.

Alternatively just mail us at [email protected] with your contact telephone

numbers or address. Our representative will get in touch with you soon.

Account opening formalities are simple. Documents required are 2 latest

passport size photos, proof of identity and address i.e. say electricity/ telephonebill, passport photocopies. Potentially large customers should also give PAN

number and photocopy of latest Income Tax return.
http://www.5paisa.com/products/5pform.pdfmailto:[email protected]:[email protected]:[email protected]://www.5paisa.com/products/5pform.pdfhttp://www.5paisa.com/products/5pform.pdfhttp://www.5paisa.com/products/5pform.pdf


36/61

36 | P a g e

Trader TerminalTarget customer segment

Trader Terminal is almost a substitute for NSE NEAT terminal and

VSAT. In fact, it has many more powerful features that only a premiumtrader can appreciate. Target customer segments are

It is for dedicated day traders, who churn their portfolio on minormovements in the market, sometimes several times a day. Their rapid

and high volume trading requires a powerful interface for lightning fast

order execution.

High Net worth Individuals with large and active equities portfolio whoneed to monitor and action swiftly.

Large corporate or trusts who have dedicated staff to monitor, analyseand shuffle their portfolios

Trader Terminal features

Trade execution in a fraction of a second! Live streaming quotes. Price watch on any number of scripts. Intraday charts, updated live, tick-by-tick. Live margin, position, marked to market profit & loss report. The Lowest Brokerage on the face of the earth! Set any number of price alerts on any number of scrips. Flexibility to customize screen layout and setting. Facility to customize any number of portfolios & watch lists. Facility to cancel all pending orders at one click. Facility to square off all transactions at one click. Top Gainers, Top Losers, Most Active, updated live. Index information; index chart, index stock information live. Market depth, i.e. Best 5 bids and offers, updated live for all scripts. Instant trade confirmation. Online access to both accounts and DP. Live updated Order and Trade Book. Details of pending, executed and rejected orders. Online access to Customer Service. 128 - Bit super safe encryption.


37/61

37 | P a g e

Facility to place orders on the phone in all major cities. Online fund transfer facility from leading Banks Online intra-day technical calls. Exhaustive database of over 5000 companies

Historical charts and technical analysis tools. India Infoline's world - acclaimed news service and research. Lots more Last but not the least, ideas that help you make money! Quality User Friendly, attractive & colourful Website. DesignThe website of India Infoline namely www.Indaiainfoline.com has beenspecially designed to facilitate its users to buy and sell shares in an instant

at any time and from anywhere they like. The site is user friendly allowing

even a layman to easily operate without any hassles

Brand Name The company as a whole in its offline business has named itself as

5Paisa.com.

Services India Infoline offers its customers, depository services and trade

execution facilities for equities, derivatives and commodities backed

with investment advice tempered by decades of broking experience. The

teams of its dedicated analysts are constantly at work to track

performance and trends.

Trading on phone is also an exclusive service available to all IndiaInfoline customers for trading in shares via the telephone. A customer

can buy and sell shares with the help of telephone.


38/61

38 | P a g e

Brokerage charges under India Infoline

Particulars Life Time Schemes Renewable Schemes

Brokerage

Intraday

Delivery: Normal

Settlement

Delivery: Trade to

Trade

Future Options

.10

.50

.75

.10

.05

.25

.75

.05

Minimum per Share

Intraday

Delivery

5 Paisa

5 Paisa

1 Paisa

5 Paisa

Depository Services

Annual

Maintenance

Credit Transaction

Debit Transaction

Pledge Creation (per

instruction)

Pledge Closure

Demat

Remate

Rejection/Failure

per entr y

NIL

NIL

0.05% Min Rs 15

Max100

Rs 50

NIL

Per Certificate Rs 15

Rejection/Failure per

entry Rs 15

Regulatory ChargesTrading Cash (NSE & BSE) 0.006 on turn over

Delivery (NSE & BSE) 0.014 on turn over

F & O 0.008% on turn over

Service Tax 12.24% on brokerage


39/61

39 | P a g e

Securities Transaction Tax

For delivery transaction 0.125%

(Charged to buyer & Seller)

For trading transaction in cash 0.025%

For trading transaction in F & O 0.0


40/61

40 | P a g e

SERVICES PROVIDED BY INDIA INFOLINE:-

OFFLINEThe Off-Line account is trading account through which one can buy and

sell through his/her telephone or by personal visit at India Infoline shop. This

a/c is for those who are not comfortable with computer and want to trade.

Offline A/c is the A/c for the investors who are not familiar with theuse of computer.

The A/C opening charges Rs.555 (One time) Lifetime membership. No AMC.

ONLINE A/C Opening Charges Rs.555 (onetime Charge). Life time membership. No AMC ( ANNUL MAINTENANCE

CHARGE)

Type with 4 banks through which one can transfer or withdraw hisfund online. Which are as follows

1. HDFC Bank2. UTI Bank3. CITY Bank4. ICICI Bank

Anyone who have A/C either of above banks they can use this facility. If

you havent A/C in the above of the Bank Company opens your a/c in either

of this bank at the time of Demat opening.

TT Advance TT 5

India Infoline Services

Online Offline Other Services


41/61

41 | P a g e

This account enables you to buy and sell shares through our website. You

get features like

a) Streaming quotes (using the applet based system)b) Multiple watch listsc) Integrated Banking, Demat and digital contractsd) Instant credit and transfere) Real-time portfolio tracking with price alert and, of course, the

assurance of secure transactions.

How to use:

By entering the Login ID and Browsing Password you can login into your

A/C.

Features of Account:-That enables you to invest effortlessly

Online trading account for investing in Equities and Derivatives viaIndia Infoline.com

Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares Make IPO booking You get Instant order and trade confirmations by e-mail Streaming Quotes Single screen interface for cash and derivatives

That enables you to trade effortlessly

Instant order Execution & Confirmation Single screen trading terminal Real-time streaming quotes, tic-by-tic charts Market summary (most traded scrip, highest value and lots of other

relevant statistics)

Hot keys similar to a brokers terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines Single screen interface for cash and derivatives


42/61

42 | P a g e

System Requirements: You will need access to a computer which has at least the following

configuration:

Pentium 3 PC, Minimum 128 MB RAM Windows 2000 or Higher Internet Connection Internet Explorer 6.0 Java enabled in IE

Online Fund Transfer


43/61

43 | P a g e

StockIdeas

Stock Ideas is aimed at India Infoline trading clients. It presents our

best stock picks in today's market. India Infoline is having research firm at

Mumbai, it gives trading tips at everyday 9:30 am in morning.

Dial and Trade

Trade in Equity by using your phone!India Infoline offers its clients RM facility. You can get trading tips

by calling India Infoline RM. Also you can place your order with your cell

phone or landline phone.

Online IPOOnline IPO (Initial Public Offering) is a new service started

by India Infoline for providing the application form of any companys

issues of shares just like the TCS issue can be subscribed by filling an

online form to reduce the paper work and the fund transfer facility is

also provided to the clients for transferring the funds online. It is given on

its web-site for helping the clients who are not able to collect the forms

manually and the speed of filling and reducing the risk of misplacing of

forms, not reaching in time, etc.

Research Based ServicesEvery investors needs and goals are different. To meet these needs,

India Infoline provides a comprehensive set of research reports, so that

one can take the right investment decisions regardless of their investing

preferences! The Research and Development at India Infoline is done at

its Head office Mumbai.

The R&D department forwards all the details regarding all stocks

and scripts to all the branches through Internet. The quarries regarding

stock positions and other relevant matter of the branch heads of each

branch is being solved through teleconference.


44/61

44 | P a g e

Institutional Research - Each individual company is analysed and its

results are placed on our site. Here Rating is given on relative basis, in the

form of underperformer, neutral and out performer.

Out performer: This stock will outperform the market by giving a

relatively higher return than a market-based index.

Neutral: This stock is expected to more or less give you the index rate

of return or a return not significantly higher or lower than the market

index.

Underperformer: This stock is expected to lose value on a relative

basis when compared to a market-based index.

Sector Watch Here each sector is analysed thoroughly. For Ex.

Pharma sector, automotive sector, and various other sectors.

India Infoline Depository Services

Dematerialization and trading in the Demat mode is the safer and

faster alternative to the physical existence of securities. Demat as a parallel

solution offers freedom from delays, thefts, forgeries, settlement risks and

paper work. This system works through depository participants (DPs) who

offer Demat services and the securities are held in the electronic form for the

investor directly by the Depository.

India Infoline Depository Services offers dematerialization services to

individual and corporate investors. India Infoline is a registered Depository

Participant (DP) with National Securities Depository Ltd. (NSDL). It has a

team of professionals and the latest technological expertise dedicated

exclusively to our Demat department, apart from a national network of

franchisee, making our services quick, convenient andefficient. At India

Infoline, the commitment is to provide a complete Demat solution which is

simple, safe and secure.


45/61

45 | P a g e

Benefits of Trading with India Infoline

India Infoline offers the facility to trade at two major commodityexchanges of the country:

1. Multi Commodity Exchange of India Ltd, Mumbai (MCX) and2.National Commodity and Derivative Exchange, Mumbai (NCDEX). India Infoline also equips you with world-class research, based on

technical and fundamental study of all major commodities.

Whats more India Infoline is in the process of launching severaltrading products and strategies to help you trade in the commodityfutures segment.

India Infoline is a registered Stock Broker with the Bombay Stock

Exchange and National Stock Exchange to trade on behalf of clients. The

screen-based trading is done on BOLT- BSE Online Trading and NEAT-

National Exchange Automated Trading, terminals. There are two types of

transactions executed on these terminals viz. intra-day and delivery based

transactions. Intraday transactions are those, in which the squaring up of deal

is done on the same day, while in delivery based transaction the squaring up

is not done on the same day, but the stock is to be traded on the basis of

rolling settlement i.e. T+2. The Brokerage of Intraday transaction is 0.10%

single side, while brokerage on delivery based transactions is 0.50% on both

side, i.e. while purchasing as well as selling.


46/61

46 | P a g e

SMS Services


47/61

47 | P a g e


48/61

48 | P a g e

What is Insurance?

Insurance is a form of risk management in which the insured transfers the

cost of potential loss to another entity in exchange for monetary compensation

known as the premium.

Insurance allows individuals, businesses and other entities to protect

themselves against significant potential losses and financial hardship at a

reasonably affordable rate. We say "significant" because if the potential loss is

small, then it doesn't make sense to pay a premium to protect against the loss.

After all, you would not pay a monthly premium to protect against a $50 loss

because this would not be considered a financial hardship for most.

Insurance is appropriate when you want to protect against a significant

monetary loss. Take life insurance as an example. If you are the primary

breadwinner in your home, the loss of income that your family would

experience as a result of our premature death is considered a significant loss and

hardship that you should protect them against. It would be very difficult for your

family to replace your income, so the monthly premiums ensure that if you die,

your income will be replaced by the insured amount. The same principle applies

to many other forms of insurance. If the potential loss will have a detrimental

effect on the person or entity, insurance makes sense.

IIFL in Insurance.

India infoline has corporate tie-up with ICICI Prudential ltd. As we

known ICICI Pru. is a well-known name of Indian insurance industry and tie-up

with IIFL give new gloom to its name. ICICI Pru. expands its client base

through India infoline.

As a result of this tie up, large client base of IIFL can get the benefit of

long term guaranteed return product and tax planning.

ICICI Prudential Life Insurance Company is a joint venture betweenICICI Bank, a premier financial powerhouse, and Prudentials place a leadinginternational financial services group headquartered in the United Kingdom.ICICI Prudential was amongst the first private sector insurance companies to

begin operations in December 2000 after receiving approval from Insurance

Regulatory Development Authority (IRDA).
http://www.investopedia.com/terms/i/insurance.asphttp://www.investopedia.com/terms/p/premium.asphttp://www.investopedia.com/terms/l/lifeinsurance.asphttp://www.investopedia.com/terms/l/lifeinsurance.asphttp://www.investopedia.com/terms/p/premium.asphttp://www.investopedia.com/terms/i/insurance.asp


49/61

49 | P a g e

ICICI Prudential Life's capital stands at Rs. 4,793 crores (as of March 31,2013) with ICICI Bank and Prudential plc holding 74% and 26% stakerespectively. For the financial year 2013, the company has garnered total

premium of Rs 13,538 crores and has underwritten over 13 million policiessince inception. The company has assets held over Rs. 74,000 crores as on

March 31, 2013.For the past decade, ICICI Prudential Life Insurance has maintained its

dominant position (on new business retail weighted basis) amongst private lifeinsurers in the country, with a wide range of flexible products that meet theneeds of the Indian customer at every step in life.

Insurance product of ICICI Pru:-

Term plans Wealth plans Child plans Health plans Retirementplans

I care

Pure protect

Life guard

GSIP

I-Assure

Cash back

Smart Kid Health

Saver

Hospital

care

Shubh

Retirement

Indian Insurance Market

The insurance industry of India consists of 51 insurance companies ofwhich 24 are in life insurance business and 27 are non-life insurers. Among thelife insurers, Life Insurance Corporation (LIC) is the sole public sectorcompany. Apart from that, among the non-life insurers there are six publicsector insurers. In addition to these, there is sole national re-insurer, namely,General Insurance Corporation of India. Other stakeholders in Indian Insurance

market include Agents (Individual and Corporate), Brokers, Surveyors andThird Party Administrators servicing Health Insurance claims.

The introduction of the draft Open Architecture guidelines has also set the

tone for a new trend in distribution. Open Architecture could enable an

insurance company to offer its products at any branch of any bank across the

country, through multiple tie-ups. This dramatically enlarges the range of

options available to potential buyers of insurance products by increasing

insurance penetration into geographies left untapped so far. If a particular life

insurer has not launched business in all the branches of a bank, another insurer
http://www.iciciprulife.com/public/Life-plans/Life-Insurance-Term-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Wealth-Creation-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Child-Plan-Education-Insurance.htmhttp://www.iciciprulife.com/public/Health-plans/Whyhealthinsurance.htmhttp://www.iciciprulife.com/public/Retirement-Plans/Retirement-Plans-Need.htmhttp://www.iciciprulife.com/public/Retirement-Plans/Retirement-Plans-Need.htmhttp://www.iciciprulife.com/public/Retirement-Plans/Retirement-Plans-Need.htmhttp://www.iciciprulife.com/public/Retirement-Plans/Retirement-Plans-Need.htmhttp://www.iciciprulife.com/public/Health-plans/Whyhealthinsurance.htmhttp://www.iciciprulife.com/public/Life-plans/Child-Plan-Education-Insurance.htmhttp://www.iciciprulife.com/public/Life-plans/Wealth-Creation-Plans.htmhttp://www.iciciprulife.com/public/Life-plans/Life-Insurance-Term-Plans.htm


50/61

50 | P a g e

can launch insurance business in those branches. The potential of Banc

assurance is estimated at 80,000 bank branches but barely 10% of bank account

holders buy life insurance from this channel. Open Architecture makes this is a

huge scalable opportunity for the insurance business.

Company Name Market Share (In %)LIC 61

ICICI Prudentials 8

Bajaj alliance 7

Birla sun life 6

SBI Life insurance 5

Others 13


51/61

51 | P a g e

SWOT ANALYSIS:-

During this training at India Infoline, I had come to know the Strengths

WeaknessesOpportunitiesThreats for the company and it is very useful for

a company to analyse them. Therefore, the SWOT analysis is presented here and

the suggestions for maintaining strengths and removing weaknesses are

explained.

STRENGTHS:

Well-maintained infrastructure. -line trading products. Lowest brokerage and other charges w.r.t. Competitors. The best investment advice correct up to 70-90 % through dedicated Research and reports. Wide product range to enable the clients to choose the best alternative. One of the best DPs in India. A positive image in the existing clients.

WEAKNESSES:

Less awareness in the market. Time consuming process for account opening, resolving the problems of

the customers, etc.

Service quality is not maintained accordingly how they are promoted.

OPPORTUNITIES:

Slope of stock market towards delivery based transaction. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing. Attract the customers who are dissatisfied with other broker & DPs. An indirect opportunity generated by the market from its bullishness. Large untapped market in the Ahmedabad city.


52/61

52 | P a g e

THREATS:

Decreasing rates of brokerage in the market.

Increasing competition against other brokers & DPs Poor marketing activities for making the company known among the

customers.

A threat of losing clients for any kind of weakness of the company. Losing the untapped market with the entry of the competitors.


53/61

53 | P a g e

MAJOR PLAYERS IN THE SECTOR:-

INDIABULLS:Indiabulls is India's leading retail financial services company with

77 locations spread across 64 cities. Its size and strong balance sheet

allows providing varied products and services at very attractive prices, our

over 750 Client Relationship Managers are dedicated to serving your

unique needs.

Indiabulls is led by a highly regarded management team that has

invested crores of rupees into a world class Infrastructure that providesreal-time service & 24/7 access to all information and products. The

Indiabulls Professional Network offers real- time prices, detailed data and

news, intelligent analytics, and electronic tradingcapabilities, right at your

finger-tips. This powerful technology is complemented by our

knowledgeable and customer focused Relationship Managers.

Indiabulls offers a full range of financial services and products

ranging from Equities, Derivatives, Demat services and Insurance to

enhance wealth and to achieve the financial goals.

MOTILAL OSWAL SECURITIES LTD.:One of the top-3 stock-broking houses in India, with a dominant

position in both institutional and retail broking, MOSt is amongst the

best-capitalized firms in the broking industry in terms of net worth. MOSt

was founded in 1987 as a small sub- broking unit, with just two people

running the show. Focus on customer-first- attitude, ethical and

transparent business practices, respect for professionalism, research-based

value investing and implementation of cutting-edge technology have

enabled it to blossom into a thousand-member team.

The institutional business unit has relationships with several

leading foreign institutional investors (FIIs) in the US, UK, Hong Kong

and Singapore. In a recent media report MOSt was rated as one of the top-

10 brokers in terms of business transacted for FIIs.


54/61

54 | P a g e

The retail business unit provides equity investment solutions to

more than 50,000 investors through 270 outlets spanning 150 cities and

22 states. MOSt provides Advice-Based Broking, Portfolio Management

Services (PMS), E-Broking Services, Depository Services, Commodities

Trading, and IPO and Mutual Fund Investment Advisory Services. Its

Value PMS Scheme gave a 160% post-tax return for the year ended

March 2004.

In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best

Domestic Research House- Mega Funds ,while in 2000 and 2002 it has

been rated as the Best Domestic Equity Research House and Second best

amongst Indian Brokerage firms respectively.

SHAREKHAN:Sharekhan is Indias leading online retail broking house. Launched

on February 8, 2000 as an online trading portal, Sharekhan has today a

pan-India presence with over 1,529 outlets serving 950,000 customers

across 450 cities. It also has international presence through its branches in

the UAE and Oman. Sharekhan offers services like portfolio management,

trade execution in equities, futures & options, commodities, anddistribution of mutual funds, insurance and structured products. These

services are backed by quality investment advice from an experienced

research team which offers investment and trading ideas based on

fundamental and technical research respectively, market related news,

statistical information on equities, commodities, mutual funds, IPOs and

much more. Sharekhan is a member of the Bombay Stock Exchange, the

National Stock Exchange and the countrys two leading commodity

exchanges, the NCDEX and MCX. Sharekhan is also registered as adepository participant with National Securities Depository and Central

Depository Services. Sharekhan has set category leadership through

pioneering initiatives like Trade Tiger, an Internet-based executable

application that emulates a broker terminal besides providing information

and tools relevant to day traders. Its second initiative, First Step, is

targeted at empowering the first-time investors. Sharekhan has also set its

global footprint through the India First initiative, a series of seminars

conducted by Sharekhan to help the non-resident Indians participate andbenefit from the huge investment opportunities in India.


55/61

55 | P a g e

EDELWIESS:Edelweiss is one of Indias leading diversified financial services

Group. Edelweiss offers a large range of products and services spanning

across asset classes and consumer segments.

Its businesses are broadly divided into Credit including Retail

Finance and Debt Capital Markets, Financial Markets including Asset

Management, Commodities and Life Insurance.

The groups research driven approach and proven history of

innovation has enabled it to foster strong relationships across corporate,

institutional and individual clients. The Life Insurance, Retail Finance

including Housing Finance, Mutual Fund and Retail Broking businesses

both online and offline formats, have paved the way for Edelweiss to cater

to the large retail client segment. Edelweiss presence now covers 211

offices in 106 cities in India and abroad with 3,907 employees. Together

with 4,003 strong network of Sub-Brokers and Authorized Persons,

Edelweiss group has presence across nearly 545 cities in India catering to

over 450,000 clients across various businesses in retail and wholesale

segments.


56/61

56 | P a g e

Comparative analysis of different players:-

Comp Name India Infoline Motilal Oswal Sharekhan Edelwiess India Bulls

Cities 500 527 510 144 523

Branches 3000 1484 1950 297 1638Client Base(In '000) 500 773 1000 450 475

NW(In Cr) 1800 1400 1550 2500 1700

0

500

1000

1500

2000

2500

3000

India

infoline

Motilal

oswal

Sharekhan Edelwiess India bulls

Cities

Branches

Client Base(In '000))

NW(In Cr)


57/61

57 | P a g e

FINDINGS:-

India Infoline is among the best broking firms, preferred by the customer.People are less aware of investment options and they do not know their

risk appetite, which leads to loss in most of the cases.

Customer of India Infoline is satisfied with its service.Most of the companies provide similar products to the customer.People trade only in equity; most of the people do not trade in derivatives

& commodity.

People prefer the firm which offers low brokerage and neglects thebenefits of research and suggestions provided by the firm.

People are not aware of the benefits of trading in derivatives so lots needto be done in this direction.

People in India generally prefers safe & risk less investment avenue. Fewof them have fear of stock market in their mind.

People wants to invest in stock market but they have not adequateknowledge of stock market so firms should educate people & help them to

invest in stock market.

People think that Insurance is a bad product for returns. India Infoline is providing Insurance products of ICICI Prudentials which

has lots of opportunity.


58/61

58 | P a g e

LIMITATION:-

Lack of awareness of capital market:Since the area is not known it takes a lot of time to convince people to

start investing in shares primarily in IPOs.

Some people are comfortable with traditional system:As people are doing trading from their respective brokers, they are quite

comfortable to trade via physical form of paper.

Lack of Techno Savvy people and poor internet penetration:Since most of the people are quite experienced and also they are not

techno savvy. Also Internet penetration is still poor in India.

Some respondents are unwilling to talk:Some respondents either do not have time or do not want to talk as they

are quite annoyed with the phone calls.

Inaccurate leads:Sometimes leads are provided which had error in it, having wrong

numbers or wrong names.

The time constraint was one of the major problems. The study was limited as there is a vast range of products are available in

the market.

The lack of sources for the analysis part.


59/61

59 | P a g e

RECOMMENDATIONS:-

1) IIFL needs to diversify various investment options initially, so thatcustomer can make profit during bullish market condition and avoid large

losses during bearish condition through Hedging.

2) As we experienced that most of the customers are not aware about all theproducts of IIFL, So in order to aware them IIFL needs to organize

monthly Seminar so people can diversify their portfolio with new options

and get effective return

This activity can help IIFL to market their products effectively and to

attract large number of Retail investors.

3) The company should focus on the customer satisfaction to make a longterm healthy relationship.

4) IIFL needs to develop proper software for Follow-upsAs most of the hot leads generated by us (Interns) are remain ineffective

just because of the improper follow-up.

5) IIFL needs to improvise its physical resources like Telephone andcomputers because we experienced difficulties at the time of tele-calling

and data base management.

6) IIFL should link as many PSU banks as clients want to use their own bankaccount.


60/61

60 | P a g e

CONCLUSION:-

On the basis of the study it is found that India Infoline Ltd. Is better service

provider than that of other stock brokers because of their timely research and

personalized advice on what stocks to Buy and Sell. India Infoline Ltd. provide

the facility of mobile trading as well as relationship manager facility for

encouragement and protect the interest of their investors. It also provides the

information through the internet and mobile alerts that what IPOs are coming in

the market and it also provides its research on the future prospects of the IPO.

India Infoline Ltd. has a vast range of investment products like Equity,

Commodity, Currency and it also deals with Insurance products of ICICI

Prudentials.

Study also concludes that people are less aware of commodity and currency

market and Insurance products which is going to be most profitable and biggest

market in India.


61/61

BIBLIOGRAPHY:-

Websites:

www.google.comwww.bseindia.comwww.nseindia.comwww.moneycontrol.comwww.indiainfoline.comwww.sharekhan.comwww.indiabulls.comwww.icicidirect.comwww.hdfcdecurities.com

NEWSPAPERS:

1. Economic times2. Times of India3. Financial express
http://www.google.com/http://www.google.com/http://www.bseindia.com/http://www.bseindia.com/http://www.nseindia.com/http://www.nseindia.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.sharekhan.com/http://www.sharekhan.com/http://www.indiabulls.com/http://www.indiabulls.com/http://www.icicidirect.com/http://www.icicidirect.com/http://www.hdfcdecurities.com/http://www.hdfcdecurities.com/http://www.hdfcdecurities.com/http://www.icicidirect.com/http://www.indiabulls.com/http://www.sharekhan.com/http://www.indiainfoline.com/http://www.moneycontrol.com/http://www.nseindia.com/http://www.bseindia.com/http://www.google.com/

Internship Report-India Infoline

Documents

Transcript of Internship Report-India Infoline